Ethereum's Price Surge: Can It Reach $5,000 After Breaking Key Resistance?
Ethereum is experiencing a significant rebound after a recent downturn, raising hopes for a potential climb towards $5,000.
Ethereum is rebounding aggressively after falling from the $4,800 area. Investors are optimistic about a possible rise towards the $5,000 mark in the coming weeks.
Technical Analysis
Daily Overview
ETH has successfully defended the support zone at $4,000, which aligns with the 100-day moving average and past demand blocks. This makes it a crucial technical level.
The RSI has also bounced back from oversold conditions and now hovers around 50, indicating that bullish momentum may be returning. The price is currently testing the $4,800 resistance level within a large ascending channel. A successful breakout could herald a significant rally for ETH in the coming months.
ETH Daily Chart
4-Hour Chart Insights
On the 4-hour chart, Ethereum has shown a textbook recovery pattern resembling a head and shoulders formation. After bouncing off the support near $3,850 and reclaiming the $4,100 level, it now approaches the $4,400–$4,500 supply zone that was responsible for the previous week’s drop.
In the short term, the structure appears bullish. If ETH exceeds the $4,500 threshold, it could target the prior high at $4,800. Conversely, a rejection at this point might lead to a period of consolidation before continuing its upward movement.
ETH 4H Chart
Sentiment Analysis
Funding Rates
Ethereum’s funding rates have recently bounced back into positive after dipping into the negatives during the latest price downturn. This recent negative turn indicated that short sellers had gained control, causing funding rates to drop below zero as bearish sentiment prevailed.
However, the recovery suggests that those short positions have been closed or liquidated, with traders gradually regaining their confidence. The return to positive funding rates signals a growing interest in long positions, even though sentiment remains cautious for the time being.
Compared to previous market cycles, current funding levels remain significantly below exuberant levels. There are no indicators of excessive leverage or overcrowded long positions, signaling a healthier market. If this trend continues, it could support a more sustained price recovery rather than a fleeting surge.
Ethereum Funding Rates
